Correlation Between ACM Research and BOE Technology
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By analyzing existing cross correlation between ACM Research Shanghai and BOE Technology Group, you can compare the effects of market volatilities on ACM Research and BOE Technology and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in ACM Research with a short position of BOE Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACM Research and BOE Technology.
Diversification Opportunities for ACM Research and BOE Technology
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ACM and BOE is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding ACM Research Shanghai and BOE Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BOE Technology Group and ACM Research is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on ACM Research Shanghai are associated (or correlated) with BOE Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BOE Technology Group has no effect on the direction of ACM Research i.e., ACM Research and BOE Technology go up and down completely randomly.
Pair Corralation between ACM Research and BOE Technology
Assuming the 90 days trading horizon ACM Research Shanghai is expected to under-perform the BOE Technology. In addition to that, ACM Research is 1.93 times more volatile than BOE Technology Group. It trades about -0.17 of its total potential returns per unit of risk. BOE Technology Group is currently generating about 0.18 per unit of volatility. If you would invest 420.00 in BOE Technology Group on September 25, 2024 and sell it today you would earn a total of 16.00 from holding BOE Technology Group or generate 3.81% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 95.45% |
Values | Daily Returns |
ACM Research Shanghai vs. BOE Technology Group
Performance |
Timeline |
ACM Research Shanghai |
BOE Technology Group |
ACM Research and BOE Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ACM Research and BOE Technology
The main advantage of trading using opposite ACM Research and BOE Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACM Research position performs unexpectedly, BOE Technology can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in BOE Technology will offset losses from the drop in BOE Technology's long position.ACM Research vs. Ming Yang Smart | ACM Research vs. 159681 | ACM Research vs. 159005 | ACM Research vs. Loctek Ergonomic Technology |
BOE Technology vs. Industrial and Commercial | BOE Technology vs. China Construction Bank | BOE Technology vs. Agricultural Bank of | BOE Technology vs. Bank of China |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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